Nokia said on Monday it would cut up to 285 staff at its key Salo plant as the world's top cellphone maker revamps the site to focus better on European smartphone manufacturing.

Nokia said it plans to stop currently ongoing rotational temporary lay-offs at the plant by mid-2010. Salo – one of the nine major factories Nokia has around the world – is the last major handset plant in Western Europe, and focuses on more advanced phone models. The cuts represent up to 13 percent of staff at the site. Finnish media has speculated the company could also close Salo, but Nokia Chief Executive Olli-Pekka Kallasvuo told a local paper in late 2009 the company was committed to remaining in the town, where Nokia has its roots.

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